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  • FOMC meeting recap: Powell not hawkish enough, traders price in 50bps of cuts by EOY

    From cityindex.com

    Today’s Fed meeting was always going to be more about what Jerome Powell and Company were saying rather than about what they were doing… …After all, the market had fully priced in a 25bps interest rate hike to the 4.50-4.75% range, and that’s exactly what Jerome Powell and company delivered. Quickly turning our attention to the statement though, there was an unexpected inclusion: The central bank left in a key statement that “ongoing increases” in interest rates will be appropriate, suggesting that multiple interest rate hikes (March and May) are likely, whereas many traders had assumed the central bank ... (full story)

But reading between Powell's lines, he is leaving some room to become more hawkish as more data comes in.

Besides, the Fed won't necessarily need to be hawkish for the US dollar to regain its dominance. A global recession will just move money into the US, thus increasing demand for USD.
Powell sounded like a bumbling nincompoop with no confidence in his words. Jeez what happened to the hawk that spread its wings at Jackson Hole?
Dovish USD. USD/JPY down to 123 to 120, RSI Monthly bearish chart will complete.
These guys are just as uncertain on what to do and what to expect going forward, like all of us.
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    Fed's Powell: Financial Conditions Have Mostly Been Unchanged Since December; It's Important...

    From @sevenloI|Feb 1, 2023|1 comment

    tweet at 3:13pm: Fed's Powell: - Financial Conditions Have Mostly Been Unchanged Since December - It's Important Markets Do Reflect Tightening We Are Putting in Place - We Are Just Going to Have to See if Our Forecast or Market's on Pace of Inflation is Right

    Fed’s Powell: According To Current Outlook, Will Not Be Appropriate For Rate Cuts This Year

    From @LiveSquawk|Feb 1, 2023|8 comments

    tweet at 3:07pm: Fed’s Powell: According To Current Outlook, Will Not Be Appropriate For Rate Cuts This Year $DXY $USD #FOMC tweet at 3:08pm: FED'S POWELL: MARKETS EXPECT INFLATION TO COME DOWN QUICKER THAN WE DO. tweet at 3:08pm: Fed's Powell: - We See Continued Subdued Growth, No Recession, Inflation Coming Down Slowly - We Have a Different Forecast From Markets - I Don't See Us Cutting Rates if Our Outlook Comes True; if Inflation Comes Down Faster Than We Expect That Will Play Into Our Policy Decisions tweet at 3:11pm: Fed's Powell: - I Don't See Signs of a Wage Price Spiral - Agree With Brainard That No Wage-Price Spiral Seen - But Once You See It, It's Too Late - We Cannot Allow That to Happen - More Disinflation Could Give a Boost to Economic Activity tweet at 3:13pm: Fed's Powell: - Once Inflation Easing, Should See Cons. Sentiment Boost - Very Reasssuring That Short and Long Term Expectations Are So Well Anchored, That's Helpful to Getting Inflation Back Down - We Monitor Financial Conditions Carefully

    Fed's Powell: There Will Not Be a Light Switch Moment on When We Know Inflation is Sustainably...

    From @sevenloI|Feb 1, 2023

    tweet at 3:03pm: Fed's Powell: - State and Local Governments Are Flush, So That Will Also Support - Lots of Spending Coming in Construction Pipeline - Those Factors Will Support Positive Growth This Yr - There Will Not Be a Light Switch Moment on When We Know Inflation is Sustainably Coming Down tweet at 3:04pm: FED'S POWELL: WE WILL ALSO BE LOOKING AT THE NEXT EMPLOYMENT COST INDEX REPORT, YESTERDAY'S WAS ENCOURAGING BECAUSE IT SHOWED WAGE GROWTH. tweet at 3:05pm: Fed's Powell: - Market Participants Have a Different Job Than the Fed - Strongly Resolved That We’ll Complete 2% Inflation Task - Goods Inflation Has Come Down Pretty Fast - Don’t Know if Further Inflation Slowing Will Be `Hard’ tweet at 3:06pm: FED'S POWELL Q&A: 'THIS IS NOT A STANDARD BUSINESS CYCLE;' 'IT'S UNIQUE;' 'CERTAINTY IS NOT APPROPRIATE;' TO BE CAUTIOUS; 'LONG WAY TO GO' #Powell #federalreserve tweet at 3:06pm: FED'S POWELL: OUR JOB IS TO DELIVER INFLATION BACK TO TARGET, WILL BE CAUTIOUS IN DECLARING VICTORY #News #Markets #POWELL #INFLATION #capitalhungry

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